What is this about?
In Germany, inheritance law and tax law are closely connected. Tax authorities therefore also examine whether tax is due when an estate is transferred. This two-pager summarises the allowances and exemptions that can leave room for transferring wealth under inheritance tax.
Why did we create the overview?
The fact that inheritances are taxed continues to give rise to controversial and emotional debates. These centre on different perspectives: some point out that inheritances transfer wealth without the heir’s own earned effort, while it is also noted that this wealth has often already been taxed during the deceased’s lifetime – in some cases more than once.
It is often overlooked that the estate as a whole is not automatically taxable. Personal allowances, pension allowances and specific tax exemptions can – depending on the family situation – allow very large amounts to pass tax-free or with tax relief. Early orientation helps you shape the estate deliberately.
What does the overview contain?
- Personal allowances by tax class
- Pension allowances and tax relief for estate costs
- Specific tax exemptions for household effects, care, rental property and the family home
- Relief rules for large business assets as well as agriculture and forestry, including their tapering
- Deemed equalisation of accrued gains as a frequently overlooked tax lever
Who is the overview for?
- For people of means planning a transfer during their lifetime or on death
- For married couples and families who want to know their tax options
- For entrepreneurs and property owners for whom special relief and valuation rules may apply
- For anyone who wants a compact overview before going deeper into their own estate planning
